The Basel Committee on Banking Supervision (BCBS)’s new capital requirements are being seen as a significant hurdle to the growth of the cryptocurrency industry. Chris Perkins, president of investment firm CoinFund, argues that these banking standards create unnecessary hurdles by increasing reserve requirements for banks holding crypto assets. This reduces their potential return on equity (ROE), making crypto-related activities financially unviable for banks, effectively stifling industry expansion. Perkins points out that these regulations indirectly suppress activity by making it prohibitively expensive for banks to engage in crypto ventures, prompting them to prioritize investments in higher-return businesses instead.